Finance Minister, Professor Mthuli Ncube has said that Zimbabwe plans to borrow US$1.9 to clear its longstanding debts to the African Development Bank (AfDB) and the World Bank.
The Finance Minister revealed that the money will be borrowed from a group of seven countries (G7) comprised of the United States, Britain, France, Italy, Canada, Germany and Japan.
Once the debts have been cleared, the country reportedly plans to borrow an extra 1 billion U.S. dollars from the African Development Bank (AfDB) and the World Bank to repay the G7 debt.
Ncube also expects the Paris Club, whom it owes 2.8 billion U.S. dollars, to forgive part of the debt.
He also revealed that the country’s debt stood at approximately US$8.5 billion at the end of June this year.
Zimbabwe has experienced dwindling lines of credit from international institutions since the turn of the millennium is it has been failing to service its debt.
The largest part of the debt came from the borrowings Zimbabwe made in the aftermath of independence in an endeavour to kick start the economy that was becoming a bit sluggish.
Some analysts have said that borrowing is not a bad thing as every jurisdiction finds itself borrowing.
They condemn the use of the money which the country has been borrowing. They claimed that political elites were using the money for personal purposes.
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